Exponential Functions

Section 4.1

JMerrill, 2005
Revised 2008
Definition of Exponential Functions

The exponential function f with a base

b is defined by f(x) = bx where b is a
positive constant other than 1 (b > 0,
and b 1) and x is any real number.
So, f(x) = 2x, looks like:
Graphing Exponential Functions
x
Four exponential 1
y y 7x
functions have 7
been graphed.
Compare the
graphs of functions 1
x

where b > 1 to y y 2x
2
those where b < 1
Graphing Exponential Functions
So, when b > 1,
f(x) has a graph
that goes up to the
right and is an
increasing function.
When 0 < b < 1,
f(x) has a graph
that goes down to
the right and is a
decreasing
function.
Characteristics
The domain of f(x) = bx consists of all real
numbers (-, ). The range of f(x) = bx
consists of all positive real numbers
(0, ).
The graphs of all exponential functions
pass through the point (0,1). This is
because f(o) = b0 = 1 (bo).
The graph of f(x) = bx approaches but
does not cross the x-axis. The x-axis is a
horizontal asymptote.
f(x) = bx is one-to-one and has an inverse
that is a function.
Transformations
Vertical y 2x
translation
f(x) = bx + c y 2x 3
Shifts the graph up
if c > 0
Shifts the graph
y 2x 4
down if c < 0
Transformations
Horizontal y 2x
translation:
g(x)=bx+c
Shifts the graph to y 2( x 3)
the left if c > 0
Shifts the graph to y 2( x 4)
the right if c < 0
Transformations
Reflecting
y 2x
g(x) = -bx reflects
the graph about
the x-axis.
y 2 x
g(x) = b-x reflects
the graph about
the y-axis. y 2 x
Transformations
Vertical stretching
y 2x
or shrinking,
f(x)=cbx:
Stretches the
graph if c > 1 y 4(2 x )
Shrinks the graph if 1 x
y (2 )
4
0<c<1
Transformations
Horizontal
y 2x
stretching or
shrinking,
f(x)=bcx:
Shinks the graph if y 4(2 x )
c>1 1 x
y (2 )
4
Stretches the
graph if 0 < c < 1
You Do
Graph the function f(x)
= 2(x-3) +2
Where is the horizontal
asymptote?
y=2
You Do, Part Deux
Graph the function f(x)
= 4(x+5) - 3
Where is the horizontal
asymptote?
y=-3
The Number e

The number e is known as Eulers number.

Leonard Euler (1700s) discovered its
importance.
The number e has physical meaning. It
occurs naturally in any situation where a
quantity increases at a rate proportional to
its value, such as a bank account producing
interest, or a population increasing as its
members reproduce.
The Number e - Definition
An irrational number, symbolized by the letter
e, appears as the base in many applied
exponential functions. It models a variety of
situations in which a quantity grows or decays
continuously: money, drugs in the body,
probabilities, population studies, atmospheric
pressure, optics, and even spreading rumors!

The number
n
e is defined as the value that
1
1 approaches as n gets larger and larger.
n
The Number e - Definition
n
n 1
1
The table shows n
n
1 1 2
the values of 1 n
A 0
2 2.25
as n gets
5 2.48832
increasingly large. 10 2.59374246
100 2.704813829
As n , the 1000 2.716923932

approximate 10,000 2.718145927

value of e (to 9 100,000 2.718268237

decimal places) 1,000,000 2.718280469

1,000,000,000 2.718281827
is n
1
As n , 1 e
2.718281827 n
The Number e - Definition

For our purposes,

we will use y=e
e 2.718.
n
1
y 1
n
e is 2nd function on
the division key on
your calculator.
The Number e - Definition
Since 2 < e < 3, the y = ex
graph of y = ex is y= 3x

between the
graphs of y = 2x
and y = 3x
y = 2x
y =e
ex is the 2nd
function on the ln
key on your
calculator
Natural Base

The irrational number e, is called the

natural base.
The function f(x) = ex is called the
natural exponential function.
Compound Interest

The formula for compound interest:

nt
r
A(t ) P 1
n
Where n is the number of times per
year interest is being compounded
and r is the annual rate.
Compound Interest - Example
Which plan yields the most interest?
Plan A: A $1.00 investment with a 7.5% annual
rate compounded monthly for 4 years
Plan B: A $1.00 investment with a 7.2% annual
rate compounded daily for 4 years
12(4)
A: 0.075
1 1 1.3486
12
$1.35
365(4)
B: 0.072
1 1 1.3337
365
$1.34
Interest Compounded Continuously

If interest is compounded all the

time (MUST use the word
continuously), we use the formula

A(t ) Pe rt

where P is the initial principle (initial

amount)
 A(t ) Pe rt

If you invest $1.00 at a 7% annual

rate that is compounded continuously,
how much will you have in 4 years?

1* e (.07)(4)
1.3231

You will have a whopping $1.32 in 4

years!
You Do

You decide to invest $8000 for 6

years and have a choice between 2
accounts. The first pays 7% per year,
compounded monthly. The second
pays 6.85% per year, compounded
continuously. Which is the better
investment?
You Do Answer
1st Plan:
12(6)
0.07
A(6) 8000 1 $12,160.84
12
2nd Plan:

P(6) 8000e 0.0685(6)

$12,066.60